Investment Management Net Revenues Rise At Goldman Sachs In Q3

Tom Burroughes Group Editor 19 October 2016


Net revenues in the third quarter rose at the investment management arm of Goldman Sachs.

Goldman Sachs yesterday reported a 4 per cent year-on-year rise in net revenues at its investment management arm, standing at $1.49 billion for the third quarter of 2016. The figure is also 10 per cent higher on the second quarter of this year.

The YoY increase was primarily due to higher incentive fees. Management and other fees were essentially unchanged compared with the third quarter of 2015, reflecting the impact of higher average assets under supervision, offset by shifts in the mix of client assets and strategies. 

During the quarter, total assets under supervision increased by $37 billion to $1.35 trillion. Long-term assets under supervision increased by $35 billion, including net market appreciation of $21 billion, primarily in equity and fixed income assets, and net inflows of $14 billion, primarily in fixed income assets. Liquidity products increased $2 billion.

For the firm as a whole, Goldman Sachs reported net revenues of $8.17 billion and net earnings of $2.09 billion for the third quarter ended September 30.

Diluted earnings per common share were $4.88 compared with $2.90 for the third quarter of 2015 and $3.72 for the second quarter of 2016. The annualised return on average common shareholders’ equity was 11.2 per cent for the third quarter of 2016 and 8.7 per cent for the first nine months of 2016, the firm said in a statement.

In August, Goldman Sachs signalled a potential restructure of its UK business following the Brexit vote, though it has yet to give details of its plan.

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